Detroit bankruptcy heads back to court for several rulings by the judge

DETROIT (WXYZ) - Detroit's bankruptcy continues today with hearings over issues before Judge Steven Rhodes. 

The main issue was whether the AFSCME Union could take sworn testimony, depositions of Governor Rick Snyder, State Treasurer Andy Dillon and Detroit Emergency Manager Kevyn Orr. 

The city had moved to quash that motion.  Attorneys for retirees and other creditors are arguing the bankruptcy was filed to avoid state constitutional protections against cuts to public employee pensions and that negotiations with creditors by the city were done in bad faith, with no intent to reach settlements.  

Assistant Attorney General Margaret Nelson argued against the depositions asserting Gubernatorial Privilege and whether the deposition would be relevant.

In the end, it was agreed that Governor Snyder would undergo a limited, 3 hour long deposition. It will be restricted to what he decided as Governor to authorize Detroit going into bankruptcy.

The time and place of the deposition have not been set, but will be determined within the next couple of weeks.

After Governor Snyder's deposition, it will then be determined if it is necessary to depose Dillon and Snyder's aide, Rich Baird.

Detroit's deficit has been set at $18 billion dollars and city employee pensions underfunded by $3 1/2 billion.

The judge will also rule later over that constitutionality issue and whether Detroit is eligible to be in bankruptcy. 

The judge also heard input over how a Fee Examiner will approve attorneys and consultants bills for the city and whether a man who sued the city from a car accident and was awarded $2 million has to wait to be paid during bankruptcy. 

The judge rhetorically asked why that creditor should be ahead of others while saying he will rule at a later date. 

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